Home PYQs UPPSC UPPSC MCQs Prelims 1999 (GS Paper I)

Question

Since the economic reforms were launched in India, which one of the following statements is true for Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) of the commercial banks?

  1. Both SLR and CRR have been raised
  2. SLR has been reduced but CRR has been raised
  3. SLR has been increased but CRR has been reduced
  4. Both SLR and CRR have been reduced

Answer:

Option D: Both SLR and CRR have been reduced

Detailed Solution:

The correct answer is “ Both SLR and CRR have been reduced”.

Since the economic reforms were launched in India, there has been a general trend of reducing both Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).